Dollar Tree Acquires Family Dollar for $8.5 Billion

Chesapeake, VA–Dollar Tree is acquiring rival discount retailer Family Dollar in an $8.5 billion cash and stock deal. The merger will create an $18 billion, 13,000-store chain covering 48 states and five Canadian Provinces.

“This is a transformational opportunity,” said Dollar Tree CEO Bob Sasser. “We will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands, and when this transaction is complete, we will operate under the Family Dollar brand as well.”

Sasser added that Family Dollar CEO Howard Levine will stay on and report to him.

“Today’s announcement represents the successful culmination of a comprehensive strategic review process that our board of directors, working with its financial and legal advisors, began this past winter,” said Levine. “While this assessment of alternatives included consideration of a number of potential partners, we are pleased to conclude this process with the announcement of this compelling transaction with Dollar Tree, which our board has unanimously determined to be in the best interests of our shareholders.”